MARKETS ON THURSDAY: Crude at $80/bbl, K'taka verdict keep indices on edge

Benchmark indices slipped on Thursday, hurt by financial stocks

3:43 PM

Nifty FMCG index ends 1.28% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
ITC	278.95	285.85	-6.90	-2.41
P & G HYGIENE	9206.30	9396.55	-190.25	-2.02
BRITANNIA INDS.	5476.75	5542.20	-65.45	-1.18
GODREJ CONSUMER	1081.05	1093.55	-12.50	-1.14
DABUR INDIA	371.35	373.85	-2.50	-0.67

3:38 PM

Nifty Sectoral gainers and losers

3:35 PM

BSE Sensex: Top gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,149, down 239 points while the broader Nifty50 index settled at 10,683, down 58 points.

3:27 PM

HUL surpasses ITC in market cap ranking first time since February 2005

Hindustan Unilever (HUL), the fast moving consumer goods (FMCG) company, has surpassed ITC, the cigarettes major, in market capitalisation (market-cap) ranking after a gap of more than one decade.
 

HUL with Rs 3,424 billion market-cap overtook ITC, which have market-cap of Rs 3,415 billion at 02:59 pm; the BSE data shows. Earlier, on February 22, 2005, HUL had market-cap of Rs 319.72 billion and ITC had market-cap of Rs 318.74 billion, CapitalinePlus data shows. READ MORE

3:22 PM

JUST NOW Brent crude above $80/bbl for the first time since November 2014

3:20 PM

Equirus Securities on Jubilant FoodWorks

 

With the new strategy yielding strong growth over the past one year, the platform is set for the next phase of growth, which would be sustainable in our view. Accordingly, we raise our FY19/FY20 sales estimates by 3%/7%; we also upgrade our EBITDA estimates by 10%/18% to factor in the higher-than-expected new store additions. Reiterate ADD with a Jun’19 target price of Rs 2,738 (vs. Rs 2,330 earlier) set at a 60x TTM EPS of Rs 45.6

3:16 PM

IIFL on JSW Steel

 

We have upgraded our estimates factoring in stronger than expected steel prices in the domestic market and benign raw material costs. We believe domestic prices would remain strong as demand has picked up and production from some companies remain impacted. The impact on this on our target price is marginally offset by the impact of the huge capex plan announced by the company. We maintain our Accumulate rating on the stock with a target price of Rs.360

3:11 PM

Bajaj Finance hits record high as Q4 profit beats estimates;stock surges 7%

 

Bajaj Finance has moved higher by 7% to Rs 2,045, also its record high on the BSE, after the company reported a better than expected 60% year on year (YoY) jumped in its standalone net profit at Rs 7.21 billion in March quarter (Q4FY18). The stock surpassed its previous high of Rs 1,989 recorded on September 8, 2017 in intra-day trade.

 

Net revenue from operations grew 40% at Rs 23.43 billion against Rs 16.78 billion in the corresponding quarter of previous fiscal. READ MORE

3:00 PM

Equirus on Exide Industries

 

We raise our FY19/FY20E standalone EPS by ~5% on expectations of higher growth and margin expansion driven by lower lead prices and operating leverage. While we remain positive on EXID, we revise our rating to ADD (from LONG) post the stock run-up over last three months. Our Jun’19 target price stands at Rs 281 (Mar’19 target of Rs 248 earlier) as we value the battery business at 22x Jun’19 EPS and insurance at Rs 46/share.

2:56 PM

RBI to the rescue with likely $15 billion bond-purchase to cap yields

 

Embattled investors in India’s government bond market are hoping to see the light at the end of the tunnel as the central bank comes to their rescue.

 

The RBI is likely to buy 1 trillion rupees ($15 billion) of securities in the current fiscal year, the survey showed, as authorities seek to cool yields and ensure a smooth passage for the government’s borrowing program. The first tranche is due Thursday. READ MORE

2:50 PM

RCom surges 48% intra-day on buzz of settlement talks with Ericsson

 

Shares of Reliance Communications (RCom) have surged 48% to Rs 15.65 per share on the BSE in intra-day trade after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks. RCom erases its entire 30% decline past one week. READ MORE

2:40 PM

IIFL on Tata Steel

 

We have marginally upgraded our standalone estimates factoring stronger steel prices for H2 FY18.  JV with ThyssenKrupp will enable the company to focus on growth opportunities in India. Debt levels are expected to decline led by selling of non-core assets, lower cash burn in Europe, strong cash flows in the domestic operations and equity raising through rights issue.

 

Bhushan Steel acquisition would be earnings dilutive in the near term. The company mentioned that setting up such capacities would be 15-20% costlier and would take 3-4 years. We believe this would boost earnings as the company fully ramps up. We maintain our Buy recommendation with a target price of Rs.835

2:30 PM

Jyothy Labs extends rally on strong Q4 operational performance; 1:1 bonus

Shares of Jyothy Laboratories have moved higher by 11% to Rs 437 per share, extending their previous day's 5% rally on the BSE after the board has recommended issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held on the record date. READ MORE
 

2:15 PM

Asia oil thirst tab $1 trillion a year as crude rises to $80

Oil prices are poised to break through $80 per barrel and Asia's demand is at a record, pushing the cost of the region's thirst for crude to $1 trillion this year, about twice what it was during the market lull of 2015-2016. Oil prices have gained 20 percent since January to just shy of $80 per barrel, a level not seen since 2014. READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	35,272.60		-0.33%
Nifty 50	10,707.85		-0.31%
S&P BSE 200	4,654.29		-0.13%
Nifty 500	9,320.65		-0.09%
S&P BSE Mid-Cap	16,129.34		0.65%
S&P BSE Small-Cap	17,614.20		0.45%

1:48 PM

Motilal Oswal on Alembic Pharma

 

Given that the recent investments in oncology, derma andopthal filings are expected to fetch returns only from FY20 and beyond, high R&D expense, depreciation and pricing pressure in the US will keep growth under check in the near term. We have cut our FY20E EPS by ~6% on the back of slower margin revival. We cut out target multiple (in-line with industry) led by the weak macro outlook and the challenging pricing environment. Maintain Neutral with a target price of Rs 500 at 18x FY20E EPS

1:42 PM

Emkay on TVS Motor Company

 

We reduce FY19E EPS estimate by 6% to Rs20.3 due to lower margin assumption while our FY20E EPS estimate remains unchanged. Our target price stands at Rs670 (unchanged), based on 25x FY20E earnings. Led by strong earnings prospects and ~25% fall in the stock price over the last 4 months, we upgrade rating to Accumulate from Reduce

1:30 PM

ADAG Stocks gain

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
REL. COMM.	14.20	10.55	3.65	34.60	20741419
RELIANCE NAV.ENG	15.55	12.70	2.85	22.44	4399962
RELIANCE POWER	36.20	33.35	2.85	8.55	1464383
RELIANCE HOME	57.65	54.30	3.35	6.17	84626
RELIANCE CAPITAL	392.50	374.85	17.65	4.71	332659
RELIANCE INFRA.	400.50	384.40	16.10	4.19	165552

1:15 PM

IFL Promoters matter: Sebi slaps Rs 16.8 million fine on promoter, 7 others

Markets regulator Sebi has slapped a fine of Rs 1.68 crore on a promoter and seven others for "illegal" off-market transactions in the shares of IFL Promoters.

 

Heena Developers is the promoter while the seven others are Bibhas Bhubaneswar Jha (HUF), Mahender Singh, Sham Sunder Gupta, Shark Communications, Veena Gupta, DMC International and Ours Trading and Holdings. READ MORE

12:59 PM

Manali Petrochemical zooms 20% on robust Q4 results

Manali Petrochemical is locked in upper circuit of 20% at Rs 41.55 on the BSE with only buyers were seen on the counter in otherwise subdued market after the company reported a record quarterly net profit in March quarter (Q4FY18).
 

The petrochemicals company posted four-fold jump in its standalone net profit at Rs 266 million in Q4FY18, on back of strong operational performance. The company had profit of Rs 67 million in the corresponding quarter of previous fiscal. READ MORE

12:47 PM

RBI to the rescue with likely $15 billion bond-purchase to cap yields

Embattled investors in India’s government bond market are hoping to see the light at the end of the tunnel as the central bank comes to their rescue.

 

Benchmark yields have likely peaked for 2018 after hitting a three-year high this week, and the Reserve Bank of India’s debt purchases will keep a lid on them even as higher inflation boosts the odds of monetary tightening, according to a survey of traders and fund managers. READ MORE

12:30 PM

MARKET OUTLOOK: Edelweiss Securities

 

Over the past two decades, India has usually done well in the 12 months leading to an election on an absolute basis (three out of five times) and relatively (four out of five times). That the impact of specific governments on markets has been diminishing over time indicates investors should actually scout for investing opportunities rather than steering clear of the apparent overhang.

 

The market could well go around in circles over the next year. But, we do see sectoral and stock opportunities that will crest absolute and relative returns. We are seeing rising momentum in IT (digital backed by currency upsides), rural (changing terms of trade, election sops), industrials (smelling small capex now) and private banks (market opportunity).

 

Large-cap picks: Dr. Reddy’s, Infosys, Kotak Mahindra Bank, L&T, M&M, RIL, Yes Bank. 

 

Mid-cap picks: AIA Engineering, Cochin Shipyard, Dr. Lal, Equitas, Gujarat Gas, Quess, SIS

12:16 PM

PE/VC investments in Apr up by 23% at USD 2.4 bn on large deals: EY

Private equity and venture capital investments in April were up 23 per cent at USD 2.4 billion, backed by large deals in sectors like e-commerce and life sciences, says an EY report.

 

According to EY, there were 69 PE/VC deals in April worth USD 2,370.09 million, while the corresponding month of 2017 had registered 66 such deals worth USD 1,920.32 million. READ MORE
 

12:01 PM

Market Check

S&P BSE Sensex	35,289.06		-0.28%
Nifty 50	10,713.20		-0.26%
S&P BSE 200	4,652.39		-0.17%
Nifty 500	9,317.00		-0.13%
S&P BSE Mid-Cap	16,066.28		0.26%
S&P BSE Small-Cap	17,590.57		0.31%

11:46 AM

Top BSE500 losers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
PTC INDIA	84.55	-7.50	-8.15	1091789
G S F C	122.45	-9.15	-6.95	552528
VAKRANGEE	54.20	-2.85	-5.00	12376
MUTHOOT FINANCE	401.95	-18.50	-4.40	124796
CENTURY PLY.	271.30	-9.35	-3.33	23468

11:32 AM

CARE Ratings on rupee

 

Going forward, factors including FPI flows, direction of oil prices, movement in GSec yields, decision of monetary policy committee on interest rates will determine the final direction of the rupee and RBI intervention might be needed to stabilize the currency.  

 

The market is on the lookout for RBI intervention to assuage rates. The 68 mark was breached and it is widely believed that there has been some intervention. The rupee will be volatile in the region of 67.5-68.5 in the next week or so driven by FPI flows, oil prices and central bank intervention. 

 

11:18 AM

Granules India up 7% on USFDA nod for generic Methylergonovine tablets

 

Shares of Granules India have rallied 7% to Rs 104 per share on the BSE in early morning trade after the pharmaceuticals company said Granules Pharmaceuticals Inc., a wholly owned subsidiary of the company, received US health regulatory approval for generic Methylergonovine tablets. READ MORE

11:00 AM

Divi's Labs gains 4% on successful USFDA inspection of Telangana unit

Shares of Divi’s Laboratories were up 4% at Rs 1,213 per share on the BSE in early morning trade after the drug firm said that the inspection conducted by the US health regulator of its Unit-1 facility at Choutuppal, Telangana this month was successful. The stock was trading close to its 52-week high of Rs 1,220 touched on May 11, 2018 in intra-day trade. READ MORE
 

10:48 AM

Morgan Stanley's Asia strategy

 

We are more constructive on Indian IT services stocks, particularly if the INR also weakens as the oil price moves higher. Our largest UWs are Consumer Staples, Utilities, Telecoms and Consumer Discretionary (in particular Autos in Korea and China). Our key overweights are Financials, Energy (focus on upstream) and Industrials. Our key underweight sectors are Tech Hardware and Semis, Autos, Transportation (particularly logistics) and Utilities.